Mexico Tariff Pause

Mexican President Claudia Sheinbaum announced that Mexico has made a deal with the USA to put the tariffs on hold for one month. The deal came after Mexico agreed to increase security at the border. President Sheinbaum posted that Mexico will send 10,000 members of its national guard to address the movement of drugs across the border, particularly fentanyl. President Trump also posted on social media that negotiations will continue over border security. While there has not been similar movement on the Canada situation, President Trump posted that he has spoken to Canadian Prime Minister Justin Trudeau on Monday morning and planning another conversation this afternoon.

The rationale for the implementation of the tariffs appears to be a moving target, with Trump using explanations ranging from the drug trafficking to trade deficits, to comments that Canada should become part of the USA. Administration officials stated on news channels this morning that the tariffs are about drugs and immigration. The situation remains fluid, but for now, it seems that we have a 30 day pause for Mexico.

We will continue to follow this issue closely and will send updates with any changes.